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MOD Awards BAE Contract to Aid Royal Navy

May 11, 2021
BAE Systems has been awarded additional contracts worth up to ₤1.3 billion for maintenance and upgrades to the Royal Navy’s fleet at Portsmouth Naval Base.

The Royal Navy at Portsmouth Naval Base has awarded two contracts to BAE Systems as part of the UK Ministry of Defence’s Future Maritime Support Programme (FMSP). The two contracts are worth as much as ₤1.3 billion over five years starting October 1, 2021. BAE will continue to maintain the entire Portsmouth maritime fleet (see the figure) under a ₤900 million contract and will establish a joint venture with KBR, Inc. to be called KBS Maritime, to deliver facility management and dockside services at the base.

David Mitchard, managing director of BAE Systems’ Maritime Services business, said: “These new contracts will enable us to continue our vital role in supporting the Royal Navy, at home and abroad, building on our long history of delivery, investment, and collaboration at Portsmouth Naval Base. Mitchard added: “Working with our customer, we’re proud of the improvements we’ve made at the base, delivering significant infrastructure improvements, and reducing carbon emissions by 65%. We’re excited by the opportunity to continue delivering transformation alongside KBR and other new service providers to support the Royal Navy at Portsmouth, mitigating environmental impact of operations whilst maintaining critical military outputs.”

Through the successful partnership with the MOD, BAE Systems has helped to improve several improvements to the base under MSDF, including creation of a new dock, improvements to existing docks 14 and 15, and creation of a Centre of Specialisation for Aircraft Carriers. At the same time, carbon emissions have been reduced from about 100,000 tons per year to about one-third that amount, about 35,000 tons, over the past 15 years. Contributing to the smaller carbon footprint are the use of electric vehicles at the base and the creation of a Combined Heat and Power (CHP) plant to supply power to aircraft carriers.         

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